Report: Annual Report of Baader Bank Group 2020

Baader Bank AG

Baader Bank 2.0

Annual Report 2020

www.baaderbank.de

Key figures Baader Bank Group

			Change to
			previous year
	2020	2019	Relative
	EUR'000	EUR'000	%
Income	212,661	104,336	>100.0
of which net interest income and current income	-2,634	-799	-
of which net commission income	30,976	32,111	-3.5
of which net trading income	168,215	46,149	>100.0
of which revenue	11,962	12,808	-6.6
of which other income	4,142	14,014	-70.4
Expenses	-156,642	-104,268	50.2
of which personnel expenses	-71,239	-46,522	53.1
of which administrative expenses and other operating expenses	-48,141	-44,604	7.9
of which amortisation and depreciation	-20,425	-13,142	55.4
of which transfers to fund for general banking risks	-16,837	0	-
Earnings before taxes (EBT)	56,019	68	>100.0
Operating result1	81,529	-8,017	-
Total assets	888,578	617,375	43.9
Balance Sheet Equity Ratio	14 %	12 %	-
Hard core capital ratio (CET 1)	17 %	14 %	-

1 Gross profit less personnel expenses and other administrative expenses as well as amortisation/depreciation on intangible assets and property, plant and equipment. In accordance with the provisions of the German Commercial Code (HGB)

Key data and other information

		Board of Directors	Supervisory Board
		(as at 31/12/2020)	(as at 31/12/2020)
WKN	508810	Nico Baader	Dr. Horst Schiessl
ISIN	DE0005088108	(Chairman)	(Chairman)
Dieter Brichmann	Helmut Schreyer
Reuters	BLMG.MU
(Deputy Chairman)	(Deputy Chairman)
Bloomberg	BWB@GR	Oliver Riedel	Prof. Dr. Georg Heni
Ticker	BWB		Christoph Mast
Sector	Banks		Ali Cavli
Stock market listing	1/8/1994		Thomas Leidel
Admission segment	Outside market
Home stock exchange	Munich / m:access
Other stock exchanges	Berlin				30.87 % free float
			0.30 % Uto Baader
	Dusseldorf
				5.43 % Ubtrend
	Frankfurt				GmbH & Co. KG
				63.40 % Baader
	Hamburg
	Baader Bank AG

Beteiligungs GmbH

Hanover

Stuttgart

XETRA

WELCOME TO

Baader Bank .

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FINTECHS

• Digital asset managers 12|2020

+% Volume of securities accounts in 2020 +% Number of accounts

+ B2B cooperation partnerships

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TRADING

> , Order books

+% Turnover

on all German stock exchanges

+% Number of trades in market making in 2020 +% Trading volume in low touch brokerage +% Trading volume in high touch brokerage

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ASSET MANAGEMENT

Modern infrastructure + integrated realisation of asset management processes

• Fund mandates 12|2020

EUR . bn Assets under management

Baader Bank

2 Annual Report 2020

Dear shareholders,

In my letter to you a year ago, I described the historic change that has been taking place in our industry and is still ongoing now. I also described the opportunities that this change opens up for our bank - Baader Bank.

At that time, our view was that banks, stock exchanges and trading firms that take advantage of the moment to change their thinking and that are able successfully to adapt their business models, strategies and market alignment and implement automation and digitalisation in their businesses and in processes for and with their business partners and clients will emerge stronger from this change in the industry.

We seized the opportunity. The financial year 2020 was one of the most successful years in the company's history. Our economic success alone, however, is much less important than the fact that we positioned ourselves in a leading role in our markets. The excellent financial result in 2020 is therefore secondary to the long-termeffect and the sustained potential of our bank. We worked hard to build up this potential in an extensive and critical strategic review, with significant changes to and interventions in our structure and strategic priori- ties. We succeeded. Today, Baader Bank is a driving force and beneficiary of a new stock exchange culture in Germany.

We generated consolidated earnings before tax for the Baader Bank Group of EUR 56.0 million in financial year 2020, after slightly positive earnings of EUR 68 thousand in the previous year. The addition of EUR 16.8 million to the fund for general banking risks, along with other risk reserves, has already been taken into account.

The continued high trading volume on the stock exchanges and trading platforms forms the basis of this strong result. Our strategic desire to create Baader Bank 2.0 and to continue

to develop its integrated platform business

is on the rise as a result. The number of accounts and securities accounts in our banking operations more than doubled once again. We now also have a healthy Group structure. All the subsidiaries included in the Group also contributed positively to the overall result for the 2020 financial year.

We have a promising future ahead of us. The positive conditions for consistently high trading volumes are strengthening a continued increase in demand for banking services at Baader Bank. If these conditions and key points are maintained, we on the Board of Directors of Baader Bank expect in 2021 to exceed even the level of earnings and operating profit from 2020.

Baader Bank	3
Annual Report 2020